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Assume a income tax rate of $28\%$ and a dividend tax rate

of $20\%$

On $1$ November $2000,$ Anthony Jackson and Craig Johnson

formed Basketball$4$All Ltd$.$ The authorised share capital

consists of $250000$ ordinary shares, of which $20\%$ at R$1\mathrm{.}50$

per share was subscribed and allotted to the founders

$($Anthony and Craig$).$ The shares subscribed by the founders

were fully paid for.

An extract of the trial balance as at $31$ October $2018$ appears

as follows:

The following additional information is relevant for the

preparation of the financial statements:

a$)$ The debentures were offered and issued on $1$ April $2018.$

The debentures are redeemable on $31$ March $2023$ at par

value. Interest is payable every $6$ months on $30$ September

and $31$ March each year. All relevant payments have been

$()$

b$)$ On $3$ December $2017,50000$ ordinary shares at R$5$ each

were offered to the public. The offer was underwritten by

Risky Pty $($Ltd$)$ at a $3\%$ commission. Application for

$45000$ ordinary shares was received, the originally offered

shares was allotted on $22$ December $2017.$ Share issue costs

amounting to R$5000$ was incurred.

c$)$ Profit for the period is stated before calculating and

journalising the debenture interest and income tax expenses

for the financial year ended $31$ October $2018.$

d$)$ Dividends amounting to R$50000$ ordinary and R$20000$

preference was declared on $25$ October $2018,$ payable on $5$

November $2018.$

YOU ARE REQUIRED TO:

Journal entry dates and narrations are not required unless

specifically requested.

With reference to additional information $($a$),$ prepare the

general journal entries for the financial year ended $31$

October $2018.$ No closing entries are required.

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